SandRidge Energy Inc. (OTCMKTS:SDOCQ) Continues To Expand Drilling Operation In Two Major Properties
SandRidge Energy Inc. (OTCMKTS:SDOCQ) issued an operations update for its shareholders on September 28, revealing that it would be announcing its 3Q2016 financial results on November 8, 2016. The company stated that it currently has two drills operating in the Mid-Continent and North Park Niobrara areas. As such, it was now allocating capital towards both of these areas, to ensure that innovations are completed and the drilling process can advance smoothly, so as to stabilize cash flow.
The company stated that its current plan was to invest an estimated $255 million, in capital expenditures, for the FY2016. Previously, SDOCQ had put this figure at $285 million. So far, SDOCQ has invested $110 million of this amount. This figure does not include any acquisition or abandonment liability related costs. The company has been focusing on increasing the number of laterals in the two areas and plans to add another 37 in the current year. A total of 26 laterals would be added to the Mid-Continent region, while the other 11 would be added to North Park.
SDOCQ revealed that it was using a pioneering multi-lateral technique in the regions, which digs between two and four laterals, from a single wellbore. As such, the overall cost per lateral is reduced and surface utilities are also shared. Regarding its properties in the North Park basin, the company stated that it planned to conduct additional 3D seismic surveys in early 2017.
Earlier, SandRidge provided an update on its voluntarily filing for Chapter 11, under the US Code of Bankruptcy. As such, the company has proposed a plan of reorganization, which has been accepted. SandRidge has already filed a Form 8-K with the SEC, in this regard. Complete details of the reorganization plan and court proceedings can be viewed in the 8-K available on the OTC website.
SandRidge Energy Inc. (OTCMKTS:SDOCQ) had a trade volume of 14.75 million and gained 13.33% in terms of share value, during the September 29 trading session, to close at a share price of $0.0085.© Copyright 2016 OTC News Magazine. All rights reserved.